mrcerdas
30-12-2004, 07:43 PM
Apex executive arrested in China
Published: December 29, 2004, 9:10 PM PST
By Chris Buckley
The New York Times
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BEIJING--The United States Embassy in Beijing confirmed on Thursday that the chairman of an American electronics distribution company had been arrested and accused of causing large losses for China's biggest television manufacturer.
An embassy spokeswoman, who declined to be identified, said American officials had met with the executive, David Ji, the chairman of Apex Digital, an electronics distributor in Ontario, Calif., that had been the largest customer of the TV maker, Sichuan Changhong Electric Appliance.
The spokeswoman said officials from the consulate in Chengdu, the capital of the southern province of Sichuan, were given access to Ji by the Chinese police. She could not specify where Ji was arrested, where he was being held, or when consulate staff visited him.
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Earlier reports said the police from Sichuan were responsible for his arrest in late October. Changhong is based in the city of Mianyang in Sichuan. Monday's 21st Century Business Herald, a Chinese-language newspaper, reported that Ji had been detained after an investigation for financial fraud.
On Tuesday, Changhong announced that it would report losses for 2004--up to nearly a half-billion dollars--largely because of $467 million of unpaid debts owed to it by Apex Digital.
Changhong's stock on the Shanghai stock exchange slumped after the announcement.
In the first half of 2004, Changhong exported $200 million in television sets, compared with $600 million for all of last year, the company said. Apex Digital had shot to prominence as a distributor of those televisions and other low-cost Chinese-made electronic goods to stores like Wal-Mart and Kmart.
Also Thursday, another Chinese manufacturer, the Genius Company, which makes DVDs, said that it was owed $4.3 million by Apex. Other Chinese manufacturers may also be preparing to disclose losses.
In a statement in Chinese financial newspapers that was reported by Reuters, Genius said it would make provisions to set aside more than 10.5 million yuan ($1.27 million) to cover possible losses.
The provisions were in line with regulations that require companies to set aside 30 percent of possible losses if the liabilities were incurred within the last two or three years.
Executives at Apex were not available for comment.
Published: December 29, 2004, 9:10 PM PST
By Chris Buckley
The New York Times
TrackBack Print E-mail TalkBack
BEIJING--The United States Embassy in Beijing confirmed on Thursday that the chairman of an American electronics distribution company had been arrested and accused of causing large losses for China's biggest television manufacturer.
An embassy spokeswoman, who declined to be identified, said American officials had met with the executive, David Ji, the chairman of Apex Digital, an electronics distributor in Ontario, Calif., that had been the largest customer of the TV maker, Sichuan Changhong Electric Appliance.
The spokeswoman said officials from the consulate in Chengdu, the capital of the southern province of Sichuan, were given access to Ji by the Chinese police. She could not specify where Ji was arrested, where he was being held, or when consulate staff visited him.
New York Times
For the latest breaking news, visit NYTimes.com
Sign up to receive top headlines
Get Dealbook, a daily corporate finance email briefing
Search the jobs listings at NYTimes.com
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Earlier reports said the police from Sichuan were responsible for his arrest in late October. Changhong is based in the city of Mianyang in Sichuan. Monday's 21st Century Business Herald, a Chinese-language newspaper, reported that Ji had been detained after an investigation for financial fraud.
On Tuesday, Changhong announced that it would report losses for 2004--up to nearly a half-billion dollars--largely because of $467 million of unpaid debts owed to it by Apex Digital.
Changhong's stock on the Shanghai stock exchange slumped after the announcement.
In the first half of 2004, Changhong exported $200 million in television sets, compared with $600 million for all of last year, the company said. Apex Digital had shot to prominence as a distributor of those televisions and other low-cost Chinese-made electronic goods to stores like Wal-Mart and Kmart.
Also Thursday, another Chinese manufacturer, the Genius Company, which makes DVDs, said that it was owed $4.3 million by Apex. Other Chinese manufacturers may also be preparing to disclose losses.
In a statement in Chinese financial newspapers that was reported by Reuters, Genius said it would make provisions to set aside more than 10.5 million yuan ($1.27 million) to cover possible losses.
The provisions were in line with regulations that require companies to set aside 30 percent of possible losses if the liabilities were incurred within the last two or three years.
Executives at Apex were not available for comment.